UPDATE 3.7.25: After Vanguard and BlackRock abandoned their requirements for boardroom diversity, the only money manager in the “Big Three” that remained committed to the quota systems as State Street. Now, it too has dropped arbitrary board representation requirements. Bloomberg’s Saijel Kishan reports:
State Street Corp.’s investing group shelved gender diversity targets for company boards amid mounting backlash against diversity, equity and inclusion across corporate America.
Last year, State Street Global Advisors said it expected corporate boards to be comprised of at least 30% women or it may vote against the head of the companies’ nominating committees.
That policy no longer exists in the money manager’s 2025 guidelines for shareholder voting and corporate discussions, according to an update released Friday. The company manages $4.7 trillion.
Originally posted January 13, 2025.
Wow, were they wrong. All those big-shot mutual fund companies and money managers talking about the virtues of ESG and DEI. Their home pages were loaded with how this was the future. Of course, it was not the future but just another way to charge customers a higher fee.
What amazes me now is that they’re pulling the plug on their endeavor as if nothing happened. They’re all leaving the Net Zero Alliance behind. “Nothing to see here, folks.” It’s business as usual. Except it’s not because doing the right thing for clients takes courage. Expect them to pump up the next “big thing” soon.
For years, the websites of these major firms have been loaded with ESG and DEI claims. It was a perfect formula to play into the guilt of the wealthy Hollywood types who attend the charity events and say stuff like: “My money is saving the world.” And think to themselves, “And making me richer! Ha, ha, haaaaa!”
As for the so-called fiduciaries offering this rat food: These guys were so wrong. And they are still trusted to manage trillions of dollars for public pensions, and the like. What a racket.
Action Line: When you’re ready to talk about Y-O-U and not ESG or DEI, let me know. But only if you’re serious. Email me at ejsmith@yoursurvivalguy.com
